Bill Would Undo Mutual Rule

Rep. Carolyn Maloney, D-N.Y., introduced a bill Friday that would reverse an Office of Thrift Supervision rule limiting the amount of stock one shareholder can own in a mutual holding company.

The legislation would repeal a rule adopted last year that gives converting mutuals the option to adopt a provision placing a 10% limit on the stock owned by publicly traded shares. It also would allow a shareholder to vote on the compensation bonuses for members of a mutual holding company's board.

In July the U.S. Court of Appeals for the D.C. Circuit said the rule was legal.